Binance Research Lifts Veil on China's Digital Currency

But, according to the Binance spokesperson, the People's Bank started to investigate issuing a crypto as early as 2014 and the project was given the formal stamp of approval only last month.

"Firstly, the US Treasury Secretary Steven Mnuchin said that the US trade officials expect Chinese negotiators to visit Washington, but declined to say whether the September encounter would happen". A tentative date is predicted for 11 November, which is the Singles Day in China- the heavy shopping day in the country. As soon as the world's fastest-growing economy announced the launch of its state-backed cryptocurrency, widespread speculations arose on who's who getting their hands on the first lot. The much-anticipated currency is also expected to reach in the hands of spenders in the United States through extensive trade in the west. Schulte, who previously served as the global head of financial strategy for the China Construction Bank, also revealed that Union Pay, an association of Chinese Banks, will receive the digital currency. On similar lines, Mark Carney, the Governor of Bank of England, suggested that a new currency should be introduced which has the support of many central banks.

In addition, major state-owned banks were seen supporting the yuan by receiving dollar liquidity in the forwards market before selling the greenback in the onshore spot market around the 7.17 per dollar level on Thursday morning, three traders said.

Interestingly enough, China's CBDC initiative includes "some of the missing elements" that is predominantly lacked by the private currencies.

"China is barreling forward on reforms and rolling out the cryptocurrency. Unlike Libra or most cryptocurrencies, which are governed by distributed committees, the People's Bank of China would have absolute control over its digital currency". The system was created to handle a number of transactions per second much larger than Libra could. Mnuchin said Wednesday that he's been in contact with China's top central banker, the International Monetary Fund and other counterparts in Beijing over what the US has deemed manipulation of the yuan. "This dual delivery system is suitable for our national conditions", said Mu. Instead of relying on algorithms to dictate the supply, the central bank will have the sole mandate of currency supply. Which is conducive to the circulation and internationalization of the renminbi.